tv Squawk Box CNBC September 11, 2014 6:00am-9:01am EDT
2014. and "squawk box" begins right now. >> good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. >> we will hunt down terrorists who threaten our country wherever they are. that means i will not hesitate to take action against isil in syria as well as iraq. this is a corporal of my presidency. if you threaten america, you will find no safe haven. >> we will break down what the president said and talk about the military options on the table in just a few minutes. in the meantime, let's take a look at the markets. stocks closing off the highs of the session yesterday.
s&p futures down by just over 3.5 points below fair value. take a look at what's been happening with oil prices. yesterday, crude oil settling at an eight-month low. that was the lowest settlement this year. you can see they're down once again this morning. down another 46 cents to 91.71. take a look at what's been happening in the treasury market. the ten-year note at this point looks like it is yielding at 2.516%. that had been the highest close that we've seen all the way back since july 31st in terms of the yield. the dollar this morning, at least at this point, looks like it is down against both the euro and the pound. the euro is trading at 1.292 up against the yen at 106.92. if you take a look at what's been happening with gold prices, under pressure despite what we've seen in terms of geopolitical concerns. gold is down to its lowest level
this year. 1,246.60 an ounce. andrew, i'll send it over to you. this will be the first of the company's sales since last november. lots of question about what they're going to use that $1.3 billion for. a lot of companies have done similar debt offerings in the last year. google being cheap right now, but leading to questions and speculations about acquisitions that this may be doing. china may miss out on the first wave of new iphones. apple says the latest version of its iphone will go on sale september 19th in other markets. so far, the company not setting a release date for china. that he have new big phone, the 5.5 inch phablet. shares up 3% in the last week. trading has been choppy.
cell phone competition heating up following that big announcement by apple this week. t-mobile announcing it's going to be selling smartphones with a feature that's going to let users call and text on wi-fi networks. this is pretty cool. there are messaging apps that let people do this. t-mobile has been trying to attract subscribers from its larger rivals. so apple managed to close higher yesterday. >> it did. not by a wide margin, but they did. >> the day before was off a little. managed to attract buying, up a couple dollars at one point. >> i'm moving with you on the why. i'm still enamored conceptually with the watch, but -- >> i'm at -- on a scale of one to ten, my interest level is negative one. so -- >> i do think the payments -- the payment thing is very cool. the new phones, i'm going rub out and buy one. the watch i'm on hold for.
>> i try not to pay for that many things, anyway. i can get my credit card out pretty fast. although, you saw the -- oil, i want to talk about that and gold. neither one of them, both of them should be moving on the world which looks like, you know, i'm expecting an asteroid to hit us or that solder flare -- >> something came out yesterday that said ebola could affect production in nigeria. >> take your pick. it's the seismic shift in the u.s. fed as we go from five years of ease and no matter how long it takes in the euro 1.29, it's starting to dry up and it's going to go the other way some day. maybe that's it. that would affect -- that might be the most powerful thing. the other thing is maybe a new
slowdown. just a general below average. and to keeping oil, you don't use as much. but it's very weird. these are big markets. dicker was on yesterday saying i don't believe where oil is. and there's going to be a super spot. >> ra super spike or -- >> there's no silver or something that you can corner the market in. >> individual stocks, shares of jds soaring. the network gearmaker announcing it's going to split into two separate entities. that company has been under pressure from sandal asset management. and retailer five below posting better-than-expected earnings. but its outlook disappointed investors. what do they do, do you know?
>> it's a teen retailer. i thought five below was the five below stores, everything in there is five bucks or below. >> oh, yeah? >> yeah. >> hot stuff. now i'm on the website. it is -- >> you knew that since you're young. >> they have good stocking stuffers. but it's most le between $1 and $5. >> stocking stuffers, for christmas, things that -- >> well, things that you would give to friends if you're giving them stockingings. because, obviously, santa takes care of the rest, right? >> okay. all right. and a watch -- i thought you meant stockings. >> i thought this was the company -- no, you keep your eye on restoration hardware. the company is turning in mixed
quarterly results. now let's get back to this morning's top stories. president obama laying out plans to battle terrorist threats. >> now, it will take time to eradicate a cancer like isis. and anytime we take military action, there are riskings involved, especially to the service men and women who carrie out these missions. but i want the american people to understand how this effort will be different from the wars in iraq and afghanistan. it will not involve american combat troops. this counter terrorism campaign will be waged through a steady, relentless effort to take out isil wherever they exist using our air power and our support for partners, fors on the ground. >> joining us now, john harwood and retired army colonel jack jacobs. before we get to you, colonel, let me talk to john. i watched a lot last night as
people conjectured beforehand. and most of them, john, said that the president has kind of a difficult job and walking an interesting line. now, i haven't colated all the commentary this morning from the six papers that i have, but politico said -- they called it the speech the president wished he would never have to give. the journal says the president gambled that the delay was worth it, talking about ousting the former regime in iraq before doing any of this, trying to lay the groundwork for something more lasting. what is the reaction so far, john, from all different circles? >> well, i think the biggest story in the reaction is that there is more positive commentary from republicans than on anything else the president has done in his term so far. it was hedged and republicans continue to raise questions,
which are legitimate questions, about whether the president's own previous policies contributed to this cancer, as he called it. and to the spread of this cancer. nevertheless, you had people like john boehner, the house speaker, saying he made a compelling case for action against isis and you have republicans signaling that they're going to give him the authority that he's requested. it's the bear minimum authority in this context that he could ask from congress to up the training and equipping of syrian rebels in saudi arabia with the idea that they will then be the boots on the ground to prosecute the u.s. strategy. some democrats are wary. they don't like the idea that we may be heading back into what are. although the president doesn't call it a war. >> did anyone really say that, john? the converse of the republicans praising the president is that
his own party saying, you know, you were supposed -- this is -- you won the nobel peace prize for peace. are there people on the far left saying, we don't know you, who are you, what are you doing? >> not exactly like that. >> they can't right now because if they do and something were to happen and we've had a couple of the hatings already, that is a tough -- and it's kind of a tough mealy mouth. normally they would. i think they're afraid to see it right now. >> that is why there is a space right now for the president to do what he's doing. public opinion has shifted. we saw that in our nbc "wall street journal" poll. 60% of the american people, which is triple the share who thought so a year ago, say it's in the u.s. national interest to have military action in syria. that is the context in which the president is acting and it's a significant moment. politico was right. this is not a speech he wanted
to give. he's deeply reluctant to reintroduce the idea of american military action in the region. he rose politically by being opposed to the iraq war. he said that when he came into office that he wanted to end both of those wars. and yet we're at a place in the sixth year of his presidency where he is now feeling compelled to act. he's going to get some support from republicans for that and dominant support in his party. that's going to term action here on out. >> colonel, we'll go to you. but i had a chance to hit up the huff post. they're calling it the long war. it's too long for the huffington post. i guess the speech ran too long or something. and illegals in quotation marks with a question and rand paul. you know, the roughing ton post always quotes rarchbd paul when
they want to make an important point. rand paul opposes the plan. there you go. there's the left, colonel jacobs. is it enough, do you think, no boots on the ground, can we accomplish the goals, colonel? >> the short answer is no. if you want to degrade isi is i, you can do that with air strikes. it's not going to get rid of isis. air strikes are only good to support troops on the ground and nobody has troops on the ground. >> what is this? is this some kind of political -- >> oh, sure. >> is this anything more than -- >> playing to the polls? >> well, the president gave exactly what the people want. the people want something to be done, but don't want to do it with us. the president is not going to be able to get the saudis to do anything except to give us some space inside saudi arabia to train people. we might be able to get some money from them. but what is really going to
change the arc of the discussion on the ground in that entire really is multi national forest from people who are threatened, like jordan, for example, who are running around with their hair on fire and properly so from lebanon, from saudi arabia. right now, all the money is going the other way. literally. isis, they have control but they're getting big contributions from people in the gulf states. it's basically a contributing enterprise. and those people who are closest to it in the region are not contributing anything. so the president is giving the american public what they want to hear. do something, but don't get us involved. >> colonel, who can we expect to team up with, the rebels in syria? are they strong enough at some point to go ahead and take on isis? >> we don't know who they are, really. we talk about the president was talking about moderate rebels. it's sort of an oxymoron.
moderate people don't rebel. we don't have anybody inside syria on whom we can rely. in the end, we plight drop some bombs, but that's not going to change anything, either. we need to get to be partners with iran and assad. those are the guys that are at stake here. he's not going to say that, but that's what's going to be required. >> hey, colonel, last night they were saying of course we are who they are. we should have armed them three years ago. do you think he's wrong about that and do you think he has exaggerated the capacity of the free syrian army to take on assad's forces and isis? >> yes, we sort of now who they were.
isis did a pretty good job on ass assad's army and got rid of the iraqi army. you don't have the iraqi army anywhere in iraq doing anything to defend itself. so just armying people doesn't do it. we need a genuine coalition. we need to get people in the gulf supporting these guys. right now, the character of american diplomacy is historyonics and hand writtening. that's not going to do the trick. you need people behind the scenes to identify the people on the ground who will benefit from the united states launching cruise missiles and isis positions. we don't have any of that. we're going to drop some bombs. and i think the estimate of three years is woefully inadequate. i think that general mcchrystal some years ago was absolutely correct when he said this kind of thing takes a deckade or more and the president basically, like i said, is just giving the public what it wants to hear. yeah, it's going the take a
while. it's going to be in the lap of the next president. and i would be pleasantly surprised if we have positive action by the time the next president takes the oath of office. >> colonel, you know, it's september 11th. yesterday, i think that anyone that didn't at least think about whether the threat has increase ed whether because of the calendar or isis, someone made the point on the discussions yesterday that this is the most savvy social media group ever and they can easily, if they have any -- i don't know. were there ever any cells here, hidden cells? remember how 13 years ago, everybody you looked at was like a hidden cell. do you get the feeling that there's isis people here already that could be contacted is that
something to worry about? >> well, there are plenty of disaffected people in the united states. and the law of large numbers alone will tell you that. we have 320 million people here, a lot of them are young. some are sympathizers. and they can all connect through the internet. i think our concern is heightened by the fact that our intelligence is actually better now. our intelligence both overseas and domestically. so we hear more about things like cells than we otherwise would. that's a step in the right direct. we have to get better intelligence even than we have now. nearly there's something to worry about. i think at the moment we have that surveillance and that sort of stuff under control. but you never have enough. and we never have enough intelligence coming from overseas. we're doing much better with
intelligence operations with foreign countries in their areas. who, by the way, are much more at risk than we are. when i mentioned jordan a few minutes ago, jordan is -- both jordan and lebanon are really, really at risk here. yeah, we're better off at finding these guys now. but so far, you know, anything can happen any time. >> john, we've got to go, but i just wonder whether or not -- and no one would try to exploit this situation, obviously. but you know, november is coming up and there are times when a president looks strong and does things that -- where, you know, you sort of rally the country around and with, you know, we're all behind this cause. i just wonder does his approval rating start going up if he takes strong, decisive automation here?
>> that's one of the fascinating questions about this. we had a korchbls tall the other day. they said this is the rare opportunity for someone sex years into his prt today, a moment like this gives the president the opportunity to rally the country and be seen is what differently. he has come to be seen as a passive leader, as a weak leader by many americans in foreign policy. his foreign policy approval is down to 32%. but if he can temper some of the republican criticism, rally some republicans behind him, that might take some of the edge off of ren opposition to him and rally some dmg, strengthen some of his core supporters. you can't change the character of this midterm election. it's going to be a good election for republicans in any case, but it might be a little less bad
for him in terms of politics. >> republicans aren't going be too abusive in his praise for what he's doing. >> it's hard to say anything about what his plans are. they say they'll be watching his actions to make sure they follow up. >> bin laden, that gave hem a chuj boot. colonel, thank you 37 we'll see you, john. when he with come back, huge plans for lunch. then a little bit more pressure on nfl commissioner roger goodell. another shoe drops in the ray rice video controversy, next on "squawk box." when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company.
from an nfl office number on april 9th confirming the video arrived. a female voice says -- and you can hear it, you're right, it's terrible. last night, the nfl appointed former fbi director robert mueller to investigate the handling of the rice domestic incident, which is all d we can do at this point. >> the nfl is taking the right step in bringing him in. >> i thought about this a lot. you guys probably won't let me finish, but number one, i -- roger is a friend of mine. i think he's a quality guy. >> i can he is, too. i don't think he's lying. >> but the bigger issue, guys come from all walks of life in the nfl. it's like a cross-section of society. i'm sure there's guys with substance abuse, alcohol problems. there was a guy that even murdered someone, right? so we know about all this.
if there wasn't a video, typically the nfl and roger goodell, you would not want him to act as judge, jury, and excuser whenever anyone is accused. that's what the courts are for. so suddenly, it almost seems as if the nfl is expected to be policing everything about society and to somehow have an answer for domestic abuse, which cuts across society. it's not -- now, the first thing he did, the two games, the -- the woman went into the elevator walking, she came out. you didn't need a video to know that something awful happened. so that two-game suspend was wrong, but he's admitted that that was wrong and that was whatever it was. >> i love roger goodell. i think he's an honest man. i think he's been a terrific commissioner to the nfl. i don't believe the nfl is truly a cross-section of america in the realer sense.
if you look at the criminal record of the players and people associated with the nfl, and actually correlated that to a cross-section of america, we would have a lot more problems in this country than we actually do. >> i don't know where you want to go with this. >> young people who are in combustible situations and there's a real question about how you're going to work with them so that you don't get into these types of situations and whether they're doing enough. i think it is a real -- >> from this point of view, i remember when i went to university of colorado and the baker hall was where the football players were. and they had -- they were the kings of the campus. they could get away with things. they do get -- you get a sense of entitlement when you're a star on the campus. >> and the tolerance for that has changed, right? this is a changing picture in society where we have less and less tolerance for people not being held to the same standards. >> i didn't see them in the library.
they weren't quite as serious about courses. >> the question becomes what is the role of the league? given that they have a concentrated group of people who are stars with money who are young and in a potentially combustible situation -- >> i would agree with you that you don't want to see them acting as judge and jury. what changes the picture is the story from last night. >> now it's the cover up versus the crime. >> the ap saying they have a law enforcement official saying he sent it to the league. mueller will get to the bottom of this. i figure some b executive must have -- >> the story is nfl asked law frrchlt from this video and they didn't receive it. this is law flrchlt take he september it. we'll see what happens. >> goodell is there for towners protect the integrity of the league. this is not good for the nfl.
but you can't -- he's not going to solve the -- i saw a spokes woman from now. >> i heard that yesterday, too. >> but let me ask you this, if he is a purely economic actor, so far i have not seen sponsors leave the nfl. i imagine the ratings on sunday will be as good as they were the week before. >> and les was standing understand behind it 100% saying you can't buy a better brand. >> and that's what i think goodell -- that's the onus on him to protect the series brand. >> but that's always been the challenge for any commissioner because there's ream constituency is the owners. but we all think as fans that their constituency is -- you know, you forget that's are kids, they're making a million, $5 million a year, they're pampered, everywhere they walk, they're idolized. people do probably -- like us,
we feel a sense of entitlement being where we are. >> you remind me of that every day. >> we really don't. it's when the guys were on the red carpet and saying, who? not quite. you pamper us. >> i do. you're my guys. when we come back this morning, the market focusing on the fed. the meeting is still days away. but the future of interest rates still driving action on wall street. should investors expect any major central bank shock? we have is that discussion next. right now, as we head to aek ba a break, take a look at yesterday's winners and losers. . ♪ i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. ♪ when i finally told my doctor, he said my crohn's was not under control.
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good morning and welcome back to "squawk box." i'm joe kernen along with becky quick and andrew ross sorkin. making headlines, oil demand growth slipping to a 2 1/2 year low. slipping to a 2 1/2 year low. >> you're right. in the demand picture overall, you've got china, europe, recession in some nations. >> the fed exiting. maybe we assume it's going to be 90 forever. let's watch. the market will tell us. the international energy agency is calling the pace of the slowdown in its words remarkable. the iea points to softening in chinese economies and that explains a lot.
i think it explains gold, it kind of explains why the euro is now and oil prices now -- >> brent oil falling below 100. >> yeah, brent oil below 100 in west texas now, 911 for the first time in more than a year for -- >> brent to be below 100. we haven't seen that in quite a while. foreclosure activity rising in august for the second consecutive month. realty track confirmed the bank started the process of repossessing more properties and scheduling more housing sections, as well. florida has the nation's highest foreclosure rate followed by nevada, maryland, new jersey and georgia. shares of lululemon are jumping, the company's earnings beating the street and the yoga clothi clothingmaker raised that rating. the pants apparently are back. they fixed the pants. >> they're not as see through any more. >> they were a little too see
through. i know you -- >> i what? >> i'm not going to -- >> i know you're not. you said you. you what? >> i'm self-editing myself right mow. >> you started a sentence. >> what is going on with the dow and the s&p? save me. >> i can say that near not made for your body. am i allowed to say that to you? >> you can say that to me. >> i think most of our viewers would probably degragree with m. let's tell but the dow and the s&p halting a two-day losing streak. is now the time for investors to get defensive? joining us with more on this is julian emanuel and michael tyler. julian, why don't we start with you. what do you think about things right now? we've got the president commenting on his strategy for isis. that doesn't seem to be
impacting markets much. what are you paying attention to? >> well, you know, there's a lot of focus on the fed. if you look back tow july meeting, you first saw high yield bonds start to trade poorly in anticipation of the july fed meeting. you started seeing that as labor day, as well. and there's just nervousness that if there's any incremental hawkishness, that the market might sell off as it did at the end of july or early august. >> we're still talking about a move that we don't anticipate coming for at least six to nine months. >> no. but the real problem is that the market is not taking the fed at its word. and to the extent that those expectations closed towards the fed's plot as it were, you know, that's where the market are in the near term. >> michael, when you look at these things, you think it's still the fed driving the day, too? >> i think the fed has the risk of being a little bit too late. markets are going to aecht what the fed is going to do because we see most of the same data that we do. and it's very clear that the
economy is firing on all cylinders or close to it. so the fed has to start thinking a little more hawkishly than it has been. i think we saw that frankly between the july fed meeting and the jackson hole retreat a couple weeks ago. chairman yellen's commentary did turn more hawkish and i would expect more of the same as we look forward to what their guidance will be at the meeting coming up next week. >> gentlemen, let's talk about the oil picture, what we were just talking about was demand from the iea. michael, if demand is down because of quickly dropping demand in both europe and china, what does that spell for the rest of the globe? are we strong enough to pull them out of a recession? or is this something that we get caught up in the vortex? >> i think oil demand may be going down. but that's partly because of more conservation, more people driving electric cars and so on here, as well. certainly -- >> wait a minute, do you think the market just turned down because we just figured out
people are driving electric cars? >> no. i think the market was elevated mainly because of issues about whether the supply in iraq would be interrupted by war and peace issues. that seems to have phased a little bit despite isis. >> julian, what do you think of that? i'm a little concerned when you look at what's going on around the world. we had a guest yesterday who laid out the idea that nigerian supply could be disrupted by ebola. >> the bottom line to us is that this weak ps in europe has put pressure on oil prices. and in a way, it's benefiting the u.s. and you're seeing obviously the economy is die verging from the rest of the world and you're seeing it in the u.s. dollar strength. so, in fact, this has been a tailwind for the u.s. >> michael, where is your favorite place right now just in terms of where you would be telling people to put money. >> we still think the u.s. is the best economy in the world right now. of the major developed economies, we're stil sticking with it. we think the u.s. equity markets
are still reasonably valued. you can expect 7% or 8% earnings growth in the next year or so. that's not priced fully into the market so we're comfortable there. frankly, because we are riding such high energy production, we're at 25-year highs, that helps us in terms of our exports and in terms of our production without really affecting the price of oil except to drive it down. which is good for consumers. >> julian, how about you? i saw you nodding when he says u.s. equities. >> we continue to like the u.s. we also think that if you look at draghi's track record over the last couple of years, he's managed to engineer at least a sense of stability where there was crisis several years ago in the eurozone. and, you know, to the extent that he's able to implement qe as he spoke about last week, we think europe could recover in the months ahead. >> okay. michael, julian, i want to thank you both for your time today. >> thank you. coming up next, new york's triumphant recovery 13 years after september 11th.
morgan brenin with the city's revival. back with that in just a moment. [ breathing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies.
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welcome back. u.s. equity futures at this hour, what are they responding to? it's just a general angst, you would think. >> the markets surprisingly closed higher yesterday. they closed near the highs of the day yesterday. >> it did. and we've got people -- we're still below 2000 on the suspect. but quite a few people talking about 2100. i see a lot of the websites talking about the market pros are warning of a market crash. the same story that we've --
soros and icahn are the two that say -- >> i don't know why they selected it now, though. what was the impetus for that? >> soros has been short. i don't remember -- >> he's been short for the past year, i want to say. >> and he's added to his position. >> it's unclear if he's really short or if that's just a hedge to what he's doing. >> you don't know whether it's s&p or -- i wouldn't give him cover to say he hasn't been short for two years. i think he has been wrong. but that doesn't mean he's going to be wrong forever. weekly jobless claims at 8:30 eastern. forecasters are looking for 300,000 first time filings last week, a key number. the report showed last week the total number of america is -- remains at its lowest level in years. morgan brennan joins us now with a look at the progress that's been made rebuilding lower manhattan. good morning to you, morgan. >> good morning, andrew.
well, you're looking -- behind me, you're looking directly at lower manhattan. this is the square mile at the southern most tip of the island. it's ground zero for the 9/11 terrorist attacks in new york city. in the 13 years since the tragic destruction of the twin towers, we have seen this neighborhood rebuilt and reshaped, starting the with 16 acre, $16 billion world trade center complex. after delays and some controversy i, the construction is now on track to be largely completed within the next year. notably, the $3.9 billion one world trade center, the country's tallest building. that's opening in the next couple of months. i'm told 58% of its 3 million square feet is leased, including anchor tenant conde nast. it is securing financing to begin building three.
however, two world trade center is still on hold. the memorial and the museum are both open to the public. they're open today at the transportation hub which has ballooned in costs to $3.8 billion. it's expected to come online finally next year and 80% of the mall's retail leases are spoken for, as well. all of this means defenses in closing ground zero for over a deckade now are finally coming down, welcoming these city blocks back into the new york landscape. and it's not just there. it's lower manhattan in general that is experiencing a rebirth. we have more tech and media companies replacing the wall street firms that have less as well as a housing surge that is catering to a population in this area, an area that has more than doubled over the past year. full disclosure, i have lived there, i have seen this transformation firsthand, but the statistics point to a neighborhood that is one of new york city's fastest growth. we're going to dig into more of
those numbers a little later in the morning. but, guys, i think i speak for all of us at cnbc when i say our hearts and prayers go out to everyone that is affected by the tragic events on 9/1113 years ago. may we never forget. back to you. >> thank you for that, morgan. we'll be ready for school, please? new york's next mayor, rudy giuliani will talk about the challenges that still remain. coming up, the revolution in the chas room. what will our education system look like in 25 years? we're going to look off a super series on the future of education in the next hour of south carolina. "squawk box." we needed 30 new hires for our call center.
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welcome back to "squawk box." could brunch help fix mcdonald's recent sales problems? the fast food chain filed to trademark the america mcbrunch. the sort of speculation is highly premature to expect it tomorrow. >> it's an issue. there are people that miss out on the sausage and egg mcmuffin, but there's other people that want the fries earlier. so i don't know how -- >> they end it at what? 10:00 or 11:00. >> 10:30 usually. i don't know why i know, but -- >> you need to know what time zone you're in if you travel. in other fast food news, burger king released what it is calling a black burger in japan. here's a picture.
the cheeseburger comes with black buns, black cheese, and black sauce. they're colored with bamboo charcoal. >> i've had black pasta before. that's supposed to be a delicacy. >> i like it's squid stuff in the ketchup. what do you mean you had a bad experience? >> doesn't look very good when it came back up. that cured me from it. from ever doing it again. >> either one. or both. >> i had black pasta once. hi a bad experience and never went back. >> you have a sensitive stomach. >> i do. >> helicopters, airplanes, car rides. i think we should get your chair so that it -- >> no more wheels on this chair. >> i'm in the line of fire right here. >> more than ten years, i've never thrown up on you. so that's a good record. let's also tell you about starbucks. it may lift a ban that prevents workers from having visible
tatto tattoos. andrew, you said you're not a big fan of this. >> i'm not a big tat guy. it is a generation thing. >> you're a young guy. >> maybe i'm on the wrong side of this. >> what did your ex-boss have? she had one. >> oh, jill abramson. she had a "new york times" "t" and then a subway token. kind of cool. >> my mind has expanded on those on ink. for everyone except in my immediate family. >> you going to get a peacock? >> excuse me? >> a peacock tattooed on you. >> nbc peacock. >> that's an idea. but how hard is it to have one just removed at some point? >> not easy. >> that was jill's problem. >> we'll continue this fashion conversation because ralph lauren grabbing attention.
remember i talked about the 4d thing. putting a fashion show in 4d. you said what is 4d. this happened in the middle of central park monday night. they did it again last night. i actually tried to go. i couldn't stay up late enough. they started the show after 9:00. >> are you going to tell us what the fourth d is? >> you're seeing a hologram. that's a complete hologram that they have put onto water. so they're spraying water up in the middle of the lake in the middle of central park. there are hundreds if not thousands of people at this fashion show. >> it's still not four. >> they call it 4d because you can see it from every angle. that would be 3d to you. >> yes. >> i know what the fifth dimension is, a singing group. >> they filmed this entire fashion show. this is a complete hologram. the entire fashion show is a hologram and there's all a these people around the lake in the middle of the night.
>> i don't understand the time space continuum either. >> i've been to 4d places and you feel or you smell what's coming out of it. maybe they're blowing water at people too. >> you'd be very happy if you were -- you'd be happy owning ralph lauren clothing, but the stock is on fire past month and a half. >> time space, are you going to see this movie the hawking? >> i think i may. >> i might too. >> steven hawking has a movie? >> yeah. it's about his life. and they showed it to him and had to wipe a tear from his eye. and he said it was, i think the -- he used two words. it was broadly true is i think the word he used to describe it. his wife stuck with him through all this. he was supposed to live five years max. i guess he lost his voice completely and said he'd never
speak. then he got -- >> the machine, right. >> i watched the trailer for it. looks really good. >> maybe we should go. maybe the premiere. >> once a week we should go out and be seen together. >> date night. >> it could be a date night. >> is it a tuesday night or wednesday night? >> it's up to you. when we come back this morning, president obama rolling out his strategy to combat isis. but no ground fighting with u.s. troops. how realistic is the president's game plan? "squawk box" will be right back.
hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.
this is awkward. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. president obama expanding a military campaign against isis. >> if you threaten america, you will find no safe haven. >> a breakdown of the speech,
the policy with cofounder of the foreign policy initiative and former vermont governor howard dean. the markets, the fed, and geopolitical risk. a checklist of the biggest factors expected to impact equities. america remembers. it's been 13 years now since the 9/11 atax. america's mayor rudy giuliani reflects on how new york city and the nation has grown since that fateful day. as the second hour of "squawk box" begins right now. good morning, everyone. welcome back to "squawk box" here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. we'll have more on the september 11 commemorations today but first let's start with the markets this morning. right now looks like the futures are under pressure. s&p futures down by just over
six points. and the nasdaq down by about 12 points. also been keeping track of what's been happening with the 10-year. we had watched that yield on the 10-year pickup for five straight sessions. this morning sitting at 2.525%. >> and it's a day of highs for the dollar and lows for crude oil. brent crude has touched its lowest point in 17 months. supplies have been on the rise this morning cutting its demand for this year and next. meanwhile the dollar is at a six-year high against the yen. and the dollar index is on a track for six consecutive weeks of gains. traders are speculating the fed might raise rates sooner rather than later. we're going to talk about that in a little bit. it's been a light week for economic reports, but we have several of note today. the labor department, they're going to be out with the weekly outlook of claims. that's out at 8:30 eastern time. and the treasury department will be out with its budget statement
coming at 2:00 p.m. eastern time. president obama yesterday outlining his plan to deal with isis to in his words, degrade and ultimately destroy the terrorist group. >> left unchecked, these terrorists could pose a growing threat beyond that region. including to the united states. what we have not yet detected specific plotting against our homeland, isil leaders have threatened. some americans have joined them in syria and iraq. >> joining us now cofounder of the foreign policy initiative and former vermont governor howard dean. and this is a crazy world we live in. i want to go to howard first. be with you in a second, dan. i think you're pretty positive on the president. howard, we talked about vermont
earlier. that's a state where we go where we really want to get some representatives for the far left. did you not like this speech late yesterday? do you -- where do you come down on this? >> you actually ought to come on up here. we've got a much better economy than most places are. >> tourist economy. it's nice up there. do you make anything anymore besides maple sirup? >> yes. i'm laughing because dan and i just finished this hot debate. >> that's what we want. >> here we go again. it's interesting because we sort of concluded where we have some common ground. i do believe the president is doing the right thing. i do believe isis is a threat to the united states. i think the difference we have on the president's speech is i also believe that we should not commit ground troops. i think if the peshmerga and others are not willing to fight for themselves, we don't want to make the mistake we made in vietnam and other places where we're trying to fight somebody else's battles. we need to be supportive to get
rid of isis. the hard work has to be done by the people who live there. >> i never thought the vietcong were headed into across the border into the u.s. to do us harm though. isn't that fundamentally different? >> it is fundamentally different. you're talking about a terrorist organization that basically controls now thousands of square miles in iraq and syria. they've got about 8 million people living under their caliphate that they're building. the latest estimate is about 25,000 fighters. and many have u.s. passports. we should be worried. i think the president was right to lay out a version of that last night. i think the air campaign is important that he's talking about. i'm glad he didn't put a deadline on this. this will go on for a long time long after he's president and what i'm concerned about is the nature of the air fighting that we will be doing. is going to be in population-dense areas.
just take iraq alone from north of baghdad up to mosul. you need real intelligence on the ground to get precision in those air strikes or you are going to decimate whole communities of innocent civilians. it's going to be a complete mess. you also need forces on the ground to work with allies on the ground who cooperate with us. there will be retribution against them if they try to cooperate with us. i have dealt with iraqi security forces over the years. i have dealt with the peshmerga over the years. these are remarkable people. i have great respect for them. i am telling you right now, they are not prepared to handle the ground operation on their own. doesn't mean we have to do frontline combat fighting. but we need to be on the ground in real numbers in a back row support providing logistics, intelligence, advising. being integrated into the small iraqi units. if we don't do it, this will not work. >> dan, if we aren't prepared to do that, then do you do nothing?
>> no. look, directionally the president is right. i'm absolutely for taking, you know, launching this air campaign. i'm simply saying its impact is going to be limited. i was in iraq in 2003, 2004. in 2003 and 2004 we had manned an and unmanned operations. it was a mess. it failed. iraq was on the cusp of civil war. the only thing that turned it around in 2007 and 2008, andrew, was when we expanded the iraqi security forces and professionalized it. we worked with the sunni tribes which was important. but we also had a real troop presence on the ground to work with the security forces we were trying to build up. if we don't do that, you're going have huge leadership problems and the iraqi problems. >> well, i don't see the iraqi forces as ever being able to do
what they need to do outside their own area. i predicted in 2003 when we did this that iraq was going to split into three pieces. which of course it de facto already has. i think we're stuck with the sunni, the moderate sunni which we have rallied. dan's correct. we did rally them in 2005, 2006. i think more of barzani than you do, dan. >> i have respect for barzani. the peshmerga is in northern iraq. this isis threat is thousands and thousands of square miles. peshmerga is not going to the central part of the country and fight. >> this is going to be piecemeal. we're not dealing with a single country. syria is no longer a single country and probably never will be again. they got their start at the end of world war i when the british and french drew arbitrary lines. these countries make no sense. >> i agree with you about that. >> so what's going to happen here is we're going to have to
fight the battle on the terms of the tribal people down there. if we don't have tribal allies, we can't fight for people that can't fight for themselves. that was the lesson of the military adventures we've had. so i think the president is absolutely right. we do actually have some intelligence forces on the ground. he has a small force of about 1300 people doing what dan suggests. which i think is fine. but i do not think the kind of massive intervention in vietnam or iraq is a good idea. >> can i just respond to one thing, howard? look. why was there a rise of al qaeda? iraq? why was there a rise of a sunni insurgency? there are many contributing factors. but one is they've been under siege by shiites and maliki's army. there was nobody protecting them. so they relied on these extremist groups. they turned to them for protection. we don't then come back to the
sunni tribes in 2007 and 2008 and say we will work with you to provide protection, they are not going to stand up to do the things you're expecting them to do. >> i agree with dan. you haven't said anything there i disagree with. our disagreement is i think whether we need troops on the ground. and i don't think we do. and i think it's also a mistake and things will get worse. >> governor, it's september 11th today. in the wake of september 11th, 2001, you remember that as a country we wanted somewhere, someone -- we wanted an entity to attack. unfortunately it was al qaeda. it was fragmented and spread around. and many would say by attacking iraq we weren't even attacking, you know, the people that did the damage to the world trade centers. it was almost this nebulous enemy, but as a country some people think it was a big mistake at this point. but for whatever reason, we wanted to do something at that point to try to prevent it. we've got a third of iraq now
with, you know, where we do see potentially a caliphate that will really want to hurt us. should we let that bad experience, what we did back in 2004, should that color our thinking on -- we do have an enemy right now we can see and it's right there. maybe this is the time when we should have done shock and a awe to crush them. >> in defense of president bush, he did the right thing in iraq. but 12 years after that, that's debatable. >> as a country they weren't committed to destroying the united states. >> no, no, no. well, they sort of were. they were accomplices to the fact. they were sheltering al qaeda. and we were attacked by al qaeda and afghanistan. that we had to do. we can argue how it's turned out. but i think we should learn from
our mistakes in the past. that doesn't mean we have to suddenly be pacifists. i don't agree with the rand paul school of do nothing and hope this goes away. we saw what what happened when it came to jeel diehling with the germans and japanese in world war ii or the world situation in world war i. i'm not an isolationist, but i do think we have to be much more judicious about when we use massive forces. >> if you say never boots on the ground, you may not accomplish the goal though. and your hands are kind of -- you've got one hand tied behind your back. >> let me just say one thing. >> maybe years from now everything changes. but for right now the president is doing the right thing. >> we haven't dealt with anything like this. if you want to be honest about it. we have a major terrorist organization which is absolutely ruthless. i mean, conducting -- engaging in human catastrophes in the likes we have never really seen
on -- they have land mass. when was the last time a terrorist organization has had land mass? >> and weapons and finances. >> and it's strategically central land. and they have those with western passports being recruited into the organization. ths a different dynamic and it is scary. it is worse. and i think howard's right. we've got to learn from our mistakes. but it's important not to over-correct. i think sometimes we have a tendency to look at u.s. foreign policy, we have the ten i did sen to over correct and then recorrect it. >> it's come back to be 70% for air strikes. >> and a third of that, joe, are democrats which is amazing. >> and i'm one of them. >> okay. thanks, guys. >> thanks. >> good to be with you.
still to come this morning, republican senator and potential presidential candidate marco rubio. we'll get his reaction to the president's address later this hour. but next, the revolution in the classroom. all day on cnbc we're looking at what the future holds for education in 25 years. the cofounder and ceo of udassi will be with us. "squawk box" will be back in just a moment. how do you beat the number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm.
welcome back to "squawk box" this morning. a group of senators calling on burger king to stay in the united states. the company planning of course to move its tax home to canada following its purchase of tim horton's. the group led by dick durbin told burger king it still would be using all of the perks of doing business in the u.s. but no longer paying taxes here is not fair. >> who said that? >> dick durbin. >> oh. good old dick durbin. i love him. really, love him. >> sarcasm is dripping. >> yeah. not fair. okay. we need to just define fair to make sure we are all on the same page. you know what i mean? >> you can't. it's impossible. >> you can't. but there's two overall versions. one is that someone subjectively can decides in the big universe what's just and what isn't just. but the other fairness is where
you are definitely compensated for the amount of work that you did. >> or for a wrong. >> that's why kids at harvard if you say all you guys that got a's and b's -- >> i thought everybody at harvard got a's. >> uh-oh. you're going to get in trouble. you know who's sitting here. that isn't true, is it? >> everyone at harvard should get an "a." says the harvard graduate. >> let's talk education. we've been looking at education and we're trying to figure out what it's going to look like 25 years from now. this is a day-long focus on cnbc today. we are starting with the forefront who is changing the game of learning. udacity ceo and sharon epperson is also with us today. >> what time is it? >> it's early. >> when was the last time you were on "squawk box"? >> i can't get on enough. i need to be here more. >> she's awake at this hour. just on another show on a
different network. >> sebastian, you have clearly been one of the leaders in people trying to figure out how education is going to change for the better. how we can get more people trained and have them pick up some of these skills. i know you have a new announcement today that you're working with at&t. you want to tell us a little bit about that? >> yeah. at&t is doing this really amazing thing. you might think of it as a cell phone company. you pay them every month. but they greatly care about education. and they've got available scholarships for disadvantaged low income kids to get a new education called a nanodegree. that's a new unit of education. very compact. designed to get you a job. >> i'm looking about this nano degree and whether that is going to be something we'll see more of in the future of people getting these.
if companies like yours are teaming up with employers to offer these special credentials, what does that mean for colleges and universities who are trying to do online education as well but maybe have not been as successful with some of their efforts? >> i think there's a big change happening from, like, the one time of education that you go to college and get a job and stay in a job for the rest of your life. which my grandparents were basically like this. to today where people stay four years in any given job and then the world moves on and they're left behind. there's a change happening where people need education more than just once. the current credentialing system, degrees is very cumbersome and big. this is focused to get you a job. it takes six months to do it. it doesn't make you a great thinkinger. doesn't change your personality. but it teaches you, for example,
how to be a great mobile programmer, a great data analyst. and within a few months i think you can get a job. >> sebastian, the big question has been would employers take this as something that they would see as a real degree? the biggest strangle hold has been you need a degree from a four-year university for many employers. i know they're having trouble finding engineers trying to come into the work place. but does it feel to you that there is a large number, a mass number of employer who is would be willing to take degrees like that and offer someone a job at the end of it. >> the big thing that happened is the washington-based organization. that represents the fortune 500 companies. all have endorsed it saying we believe in it. it's happening. and there's a new concept, new idea.
the material that we're offering with at&t and companies like google and facebook is really built by industry. it's built by industry to get you a job. so who better to qualify what to know than the companies who end up hiring you? >> sebastian, thing that i'm curious about is you take this program, this particular program relating for at&t's purposes. now relatable is that then to the next employer. or do you have to go back and do it? >> the content that we teach and at&t teaches here is something like ios development. you have an apple phone and you want to build a great app, something to no e. that's not employer specific. at&t doesn't consider anything by having just a proprietory.
and you're going to help the people of america. there's a huge skill gap of people look frg labor and don't get it because they're missing the right skills. so what at&t is doing is good they are world. >> this is a great departure from where you started udacity. looking at the online courses and opening them up to everyone. now making it very focused on vocational training really. i'm wondering because so many schools have adopted this, many saying this that is going to be the future. is that the future or are there too many problems for that type of approach for what we're really going to see in 25 years from now? >> i think that's a great question. some of you might know udacity started about three years ago. the first massive online course in artificial intelligence. it's a focus. we want to help people. we want to democratize it.
we want to make it possible to learn on the toilet. the people who know best what you need to know are the companies who end up hiring you. so we went straight to those companies. and at&t believe it or not is a major employer. they have over 200,000 employees and they know exactly what you need to get a job here or at verizon, their competitors. >> sebastian, thank you very much for joining us today. you're going to leave us with their image. you changed my idea of online learning if people are actually learning on the toilet. thank you for joining us. sharon, thank you. >> definitely. coming up, america remembers the events of 9/11. ceremonies will take place in l lower manhattan and d.c. today. rudy giuliani will join us later on to reflect on the security threats the nation still faces 13 years later. "squawk box" returns in just a moment. take a deep breath in...
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now the answer to today's aflac trivia question. what did apple's first logo look like? the answer, it featured sir isaac newton sitting under an apple tree. coming up next, thursday's trading block oil hovering near eight-month lows in stocks. they are still sitting close to all-time highs. we'll give you the game plan for your money straight ahead after this.
welcome back to "squawk box," everyone. among the stories that are front and center this morning, oscar pistorius has been cleared of premeditative murder charges. but the judge said he acted unlawfully when he shot his girlfriend. the court is adjourned for lunch. the judge reads a decision. that reading can last for hours. she read the beginning part of that decision, cleared everyone for lunch. she still has to come back and
announce on culpable homicide which is similar to manslaughter here in the united states. this has been one we've been watching for a very long time. it's hard to imagine. >> i don't know what to say. there's no jury. >> i don't know. i know that it lasts hours. >> we take our criminal justice system for granted here and there are some mistakes happened. guilty people that obviously we've seen that as well that get off. but this one is a head scratcher. it's a different country and i'm scratching my head. i'm not really sure. i mean, the whole -- wasn't he out for a couple years too? >> he's not served time in prison while this has been going on. >> i just don't see how the victim's families can -- >> it seems to be a tough nut to swallow. >> and the whole story just absolutely preposterous. o.j.'s story was crazy too. >> i was not the the courtroom so i'm not going to judge.
>> also let's tell you about corporate news this morning. a new diet pill made by orexigen therapeutics. it's the third obesity treatment to get the regulatory okay. also shares of lululemon jumping this morning. the yoga gear maker is raising its outlook. it a lowered that view back in june. that stock is up by about 13%. >> and any time we can, we'll talk about charlie sheen. chiming in on the lesean mccoy tipping saga. he's giving the waiter who was shortchanged by the eagles running back $1,000. lesean mccoy left the server a 20 cent tip on a $60 check. a reporter who spoke to mccoy said mccoy was not happy with the service. >> wow. >> why's the waiter get a thousand bucks? >> you know what? we'll ask mr. sheen when he
guest hosts. which he knows that offer still stands. >> standing that offer. >> we would appreciate that. >> he's got a lot to talk about. >> he's in california right now. >> he is. >> is he up at this hour? he might not have gone to sleep yet. >> we don't know. but people with tiger blood stay up late. it is time for our trading block this morning taking a look at oil. down about 12% over the past three months. now sitting at eight-month lows. $90 a barrel is within reach. seeing the dollar hitting a high against the yen signaling a return to currency markets. joining us now paul sanki. good morning, guys. >> morning. >> can i raise an issue with both of you but i'm going ask boris, what do you make of this whole situation in scotland? i think about this from a currency perspective. what's going to happen here? >> we still don't know. first of all, i've got to tell you i would pay to watch charlie
sheen guest host with you. >> that's what i mean. >> the nielsen boxes would explode. >> i agree with joe. scotland, really, really interesting story. obviously i am very skeptical that they're going to vote yes. i'm very much with the bookies who have a 70% odds they're going to vote no. but if they do vote yes, it opens up a can of worms you can't possibly imagine. not only opens up with uk, opens up all of the independents movements in europe. i think the ultimate irony of all this is that the euro itself has actually shown that you could have all sort of separate countries within a single monetary union. if you have all of these countries beginning to spin out, they're not going to go into the euro and pound. but the structure exists. in some ways the entire european monetary union has created a situation where this type of a
scenario is possible. >> have we not been focused on this enough? i don't know if you saw the news this morning. world bank of scotland saying if scotland were to become independent, they would actually have to move directly to england because they need to be part of the bank of england. >> of course. yeah. of course. and people have made a point that the scottish financials seconder is 12 times -- 1,200% of the scottish gdp. it could be massively bad for them. joe's favorite economist wrote a piece in "the new york times" saying they should not spin out of uk. but i think you basically -- the reason we're not making a big deal out of it is the market feels when push comes to shove, they're going to vote no. i think it's going to be a huge story next thursday and have a big impact. >> paul, help us with oil. the president making his presentation to the country last night. how does that impact your
thinking about everything else? >> yeah, hi. good morning, guys from houston here. i think that we know the geopolitical situation's terrible globally. but the major concern here really is the demand side is fairly weak. we've got the iea cutting numbers again for the demand growth. and we're seeing 100-dollar oil on a weak demand. globally over the next three to four years. at the same time we have more like a million and a half a day. everyone's pretty bad up here especially as you talk about the dollar strengthening. >> to put a finer point on it, the geopolitical headline risk is not nearly the issue to be focusing on? it's simply a demand issue at the moment? >> well, i think we feel things got as bad as they could possibly get in summer when
demand is at a peak. although we haven't resolved all of these problems in libya or syria or iraq for that matter, the reality is as we come out of summer, demand falls and risk has come out of the market. so the focus here is how the salaries are going to cut out from an over supplied market. given what i was saying about north american supply strength is having a natural effect on the dollar, strengthening the dollar and further pressuring devices. the question is what's going to save oil from going lower. >> and how much lower just to put a number on it? >> well, you know, the general theme is we may have to go so low we actually reduce activity in the u.s. market which would be about $80 a barrel would be the point at which you'd think people would stop drilling as aggressively as they are now. saudi i think is stepping in effectively. so i think on the brent side of the equation, once we get below a hundred they'll begin to cut and will cut more and more the
closer we get to 90. >> paul making the bearish case. boris, thank you for making the charlie sheen case. we've got to run this morning, but we appreciate both perspectives. coming up next, senator marco rubio. the florida republican's reaction to last night's address and much, much more when "squawk box" returns. plus on this somber day of remembrance, america's mayor rudy giuliani is going to be here to talk about new york and the nation 13 years after 9/11's attacks. we're going to be right back in j u.s. a moment. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized.
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mfs. because there is no expertise without collaboration. welcome back to "squawk box." after posting gains yesterday you can see the markets are turning around this morning. dow futures down 45 points below fair value. s&p futures off by 4.5 points. president obama vowing to take out isis saying that the campaign will be steady and relentless. the president also says he would welcome congressional action, but he says it's not necessary. >> my administration is also secured bipartisan approach for this here at home. i have the authority to address
the threat from isil, but i believe we are strongest as a nation when the president and congress work together. so i welcome congressional support for this effort in order to show the world that americans are united in confronting this danger. >> joining us now with more on the president's plan is florida senator marco rubio. he serves on the senate foreign relations committee. thank you for joining us this morning. your thoughts on the president's announcement last night. >> we're in a better place we were a week ago or month ago with regards to the president's view on this. not long ago he said isil was the jv team. now he recognizes the threat they pose. and not long ago he said it was a fantasy to think they could become an effective fighting force. he mocked them for being bankers and fopharmacists. i do have some concerns about last night. i think comparing this effort to what we've done in jeh men and
somalia is a mistake. we don't have that in syria and iraq. second, the nature of the threat is quite different. isil is not just a terrorist group. it's also an insurgency that carries out military operations. they're well funded. they control territory the size of the state of maryland. it's a much more significant group that we're confronting. somalia and yemen themselves are not a picture of -- we've had success there, but they're not a picture of stability. and i didn't hear the president say last night and i thought this was important, he didn't say we are going to do whatever it takes to defeat them. i'll tell you why that matters. a large component of this plan relies upon us working in conjunction to confront them. that is i believe should be the first step we take nap is the ideal outcome. >> who do you think we should be working with on the ground? >> we shouldn't be working with them. but what if that fails? what if the syrian rebels no r not able to become a force that could confront them?
what if the iraqi military forces do not come together fast enough? what if the curds are not able to move on beyond the territory? does that mean isil gets to stay? >> is that an argument for american boots on the ground? >> certainly we need other partners. but i would say we don't want american ground troops there. but that possibility exists that if all other things fail, at least at the special operations level, it may require that. it's important the president be honest about that reality. our position should be we'll do the best we can. >> the president did say last night this is expected to be a long-term fight. this is not something that's going to end quickly. and saying this is likely going to be something that is handed to the president's successor. this will be a long war. this will not go away easily and it will be something in two
years his successor will have to deal with. what do you think about the possibility of that? >> that is true. >> and potentially in that seat, what would you be hoping is done at this point? >> i think a lot of the things happening now are e the things i've been calling for for quite some time. whether it's ka pas at a tiinca syrians. i think the sustained air assault against transportation lines, their supply capabilities. their headquarters in syria. these are all important elements as well. so i do think we're doing some of the right things now. i've. this may be a sustained thing. what choice do we have? this is the question we have to ask ourselves. what is the alternative. the alternative is to say we're going to accept isil nap is not acceptable.
>> it is very much behind a move right now. do you think the public support would be there two years from now if this is a long drawn out campaign? >> i don't know. but the answer to that i would say is if we don't have a campaign that's successful no matter how long it takes, that means americans are going to be targeted both at home and abroad. that enmoos the world is going to see an islamic caliphate in the middle east that's going to bring a uniquely brutal and vicious brand of sunni islamist thought to this part of the world that would overrun jordan and turkey and what we know as israel and saudi arabia. i would say that leadership requires us to do what is right no matter what the polls are telling you. and there is no more important for the government and the united states that this should remind us more. >> the president last night said he has legal authority on this. he's relying on the 2001
agreement that was laid out to go after al qaeda. legal experts have raised some questions about that because clearly isil is not associated with al qaeda at this point. if the president did come to congress, would he get your vote supporting this move? >> yes, he would. because it's important as i said to carry this out. i want to see a good plan. certainly want to make sure it's an effective one and not a symbolic one like the last time he came to congress. the president does have the authority. if left unchecked, they would overrun the facilities in iraq. they could move quickly into jordan and obtain the entire region. congress would put aside politics, rally around the commander in chief, and authorize him to do whatever it takes to beat isil. >> senator rubio, thank you for your time today. >> thank you.
day september 11th. welch was supposed to talk about his new book and everything changed on that day. more than 3,000 people perished at the hands of terrorists. countless lives changed forever. one of the men who helped lead the nation through those dark days after 9/11 was new york's mayor rudy giuliani. he joins us this morning from the hallowed site of ground zero here to talk about the nation's road back and the road ahead. good morning, mr. mayor. i don't know when we got the ifb in your ear, but we just had senator rubio on. because we try to talk about what's front and center, we got to, we'll talk about september 11th. but let's talk about the president in the speech last night. senator rubio made one point and that was maybe it's a false choice or a false narrative. if you say no ground troops ever but we will eventually defeat isis, it almost sets up a false
choice where if we don't -- if we never send ground troops and isis exists, we're going to let them exist forever. is that a problem here to completely rule out the use of ground troops ever? does that mean that maybe we don't defeat isis? was that a mistake? >> well, i mean, first of all we do have ground troops. we have a thousand troops there. so in a way it's somewhat misleading. the question is should we have sufficient ground troops to get the job done and the answer is yes we should. and you shouldn't take the option off the table. the minute you take the option off the table, you suggest that you're not as serious about it as you might be. it becomes harder to build a coalition. for the life of me i can't understand why the president begins all his speeches with, we're not going to use ground troops, we're not going to use ground troops. it sends a message that sounds like there's only half a commitment to this opposed to
the full commitment that would be necessary to defeat isis. maybe ground troops might not be necessary, but you don't rule it out. frankly i think they are necessary. >> it's the reluctance, i guess, given the mentality of the country let's say two or three months ago it was still prevalent in the country. most people would have said i back you on that, mr. president. when he first said we're going to do some of these air strikes, he started that speech with i have been a president spending my time extricating us from wars. this is still residual sort of reluctance that served him well in both elections and satisfying what most americans wanted. it's going to be hard to have him admit we might engage with ground troops. >> you know, there's a difference between elections, polls, and then national security.
national security has never been determined by polls. it required the leadership of franklin roosevelt in order to accomplish that. you've got to be able -- as a president you've got to be able to separate elections, polls on the one hand, then what's necessary for the united states and then explaining it to the american people rather than letting polls drive your decision making. >> speaking of it is the 13th anniversary, mr. mayor. there are other polls out that say americans are more concerned now about the potential for something happening similar to that awful day. do you -- what is your feeling? do you have any people where i'm sure you hear information from time to time. is new york still a target? can we ever not be vigilant? we never not be vigilant as i have said on numerous anniversaries of september 11. this is not a matter of history.
there's a beautiful museum that's built. that gives the thought it is history. this isn't. this is an ongoing war against us which i think is part of the problem here when we talk about war on terror or whether we have a war on terror or not, they have a war on us. islamist extremism terrorism is at war with the united states. they have been countrily now for several decades. and the question is are we going to recognize it? call it for what it is? put in the necessary resources to protect ourselves? or are we going to play political correctness? i prefer to see us be in it for the united states. >> if where we are today perhaps to where we were five years ago compared to that fateful day 13 years ago. >> we're certainly safer than we were 13 years ago. tremendous amount has been done
during the bush and obama administration with homeland security. we don't have time to detail all of it, the new york city police department is about as well prepared as a police department can be given the nature of the threat here in new york. but are we in more danger now than we were a few years ago with the recognition of isis or isil and other groups? yes, we are because this is a new group. we're just finding out about them. that leaves a lot of uncertainty. i think you hear that reflected in some of the comments from the law enforcement people. i would like to make -- >> go ahead, sir. >> i would like to make a point about downtown manhattan that is an optimistic one, however. after september 11, many people thought this place was finished. nobody was going to return. the businesses weren't, the people weren't. now in lower manhattan in the area i'm standing twice as many
people live here than before september 11th. which gives you a look at how resiliency can be over terrorism. >> we're unfortunately out of time. had a couple more points for you to make. but we appreciate your time this morning. >> thank you very much. >> you're very welcome. and as we always do, thanks for what you did on that day. and afterwards. it was great to see you this morning. >> thank you. when we return, marty is going to talk to us about the markets. he'll tell us how to play the inversion game. find out if his picks are in your portfolio. and later, more on the president's speech last night on isis. we're going to talk about it. "squawk box" returns in just a moment. ♪ ♪
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market reaction. if there is any to the president's speech. >> america is better positioned today to seize the future than any other nation on earth. >> we'll hear what investors should be looking at looking to next week's meeting. >> jobless claims on tap. that data is just a few minutes away. >> and america remembers 13 years after the 9/11 attacks. we will honor those lost as the
final hour of "squawk box" begins right now. welcome back to "squawk box." i'm joe kernen along with becky quick and andrew ross sorkin. today marks 13 years since the september 11 attacks. millions around the country will stop to reflect on that horrific day. and the heroes, the true heroes that died. there will be a private ceremony with the reading of the names of those who died in the plaza outside of the 9/11 museum later on. once again, will be shocked and sickened and mortified by how long it takes to get through the t's or the l's or how many common names you see. 30 and 40 common last names. because you don't really understand it until you see what 3,000 actually is. this year for the first time
that plaza will be open to the public from 6:00 p.m. to midnight. a moment of silence will be held in washington this morning right at 8:46 a.m. eastern time. it has been in previous years to honor those lost on this day. >> no great segue here, but let's turn our attention to the markets for a quick moment this morning. u.s. equity futures, see how they are setting themselves up. down at the moment. the dow off about 69 points off. nasdaq off about 14 points. and the s&p 500 about 7.5 points off. in the asian markets. the nikkei. we have red arrows across the board in european markets. everything is off. put this on the marginal category for now. the gloesbal markets are
trying to make sense of speculation about central bankers. in our case the fed meeting. joining us now marty sass. i don't know if that's your thing, really, marty. i guess you've got to think about it occasionally, don't you? even though you're great at looking at individual situations, but there's a lot happening around the world. >> absolutely. and joe, i look at these geopolitical issues as forces that cause emotional reactions in the market. but from an investor stand point, one has to look at the intrinsic moves they make. so when the emotions take over, that provides opportunities. i see some opportunities now. i think when we get weakness on a day like today, there will be opportunities and individual names as such as those we pick in our platinum portfolio for
you. >> oil, depending on -- i mean, you've bought airlines before. i can think of other examples where macrogeopolitical events would cause you either to become less or more optimistic about some of the situations. >> absolutely. >> what is your analysis of global growth? of oil prices? of the dollar? of interest rates? >> okay wi, so i think we have subdued inflation around the world. and slowly improving growth. and when we see declines in commodity prices, we have to realize that it actually is beneficial to some. if jet fuel prices go down, it's tremendous benefit to them and all the airlines.
happen to like american the most because they have as you know my thesis is we've got this well managed u.s. air group that took over this poorly managed american airlines to become the largest in the world with tremendous upside in earnings that i think are going to beat consensus estimates. if oil prices go lower particularly for jet fuel because that's what they're tied to, it's just going to be a big benefit to their earnings and cash flow. >> that was one of your picks. let's keep going. what else? >> well, one of the biggest pictures globally is constraining health care costs. and i am going to make a switch in the portfolio this morning. as you know, i have three stock picks to optimize in the platinum portfolio. and one is american airlines. another one was mckessen which i still like.
stock up 13% versus more than double the market since i recommended it here. but i'm switching it to mylan labs switch a leading manufacturer. and one of the cost containment problems is generics. they're a leader. the stock has been under a little pressure recently which provides a buying opportunity because of the rhetoric we hear in washington about tax inversions. >> you are so unpatriotic, marty. >> well, i do believe in the capitalistic system that companies should try legally to optimize their cash flow. and that's what these tax inversions are about. >> mark cuban thinks you should stay away from all this stuff. >> yeah. he had just gotten out of surgery too. there are two kinds of people in the world, marty. those that think that the private sector treats capital best and those that think it's actually patriotic to give the
government as much money as you can to sort of throw down -- to let fall through the cracks. >> i know. i'm still scratching my head about the latter. >> i know. you can -- it doesn't matter. there's feeling and there's log logic. if you feel virtuous on the front end, you don't want to connect dots well, you know, capitalists just are not patriotic. and what's your third stock? >> the third one is aercap which i'm sticking with. stock's up about 13% since i recommended it. and i think there's a lot of runway, if you will. forgive the quip. to this leading aircraft leasing company. they just acquired ilfc from aig which quadruples their fleet, makes them number one in the world. then gives them scale to bulk
discounts on aircraft. i think it's got another 33% upside just to get to fair value. >> very good. all right, marty. we appreciate it. thanks. we'll check back with you. i like these switches. you can't write -- a guy the other day had been with kellogg's for 85 years, his family. you made some money in mckesson. now, we'll see you again soon. check back. >> look forward to it. >> that guy is a billionaire now too. >> he is. >> long-term investing can be rewarding. up next, the president's plan to defeat isis. will congress support it? does he need their support? senator ron johnson and ben cardin will join us. also checking the futures ahead of the jobless claims data. we're looking for 300. we will have the numbers and market reaction. people in the radio say we need to say the futures.
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live look at the white house there. president obama making his case for an isis strategy in primetime addressing the nation. >> i've made it clear that we will hunt down terrorists who threaten our country wherever they are. that means i will not hesitate to take action against isil in syria as well as iraq. this is a core principle. if you threaten america, you will find no safe haven. >> today he's heading to the hill to meet with members of the senate. join ugh us now, senator ron john and ben cardin. both members of the foreign relations committee. let me start with you, senator johnson. your sense here in terms of just reaction, is this enough and we've been talking a lot about whether the idea of not having any ground troops, how successfulful can this be? >> good morning. i agree with the president the
tail end of his speech. he said our own safety, our own security depends on our willingness to do what it takes to defend this nation. but by taking out ground troops he's saying we'll do what it takes up to a point. and i just think that's a blunder. i don't think that's how you assemble a coalition. that's not showing the 100% commitment that i think the president of the united states must show to america, to our allies, and quite honestly to our enemy that we are going to destroy isis. right now it looks to me pretty much a strategy of degrading which we must do first. and one of containment. i don't think isis can be contained. >> senator cardin, do you agree with that and if you do, do you still go through with the air strikes if you don't think you can actually get to the other side on true success, whatever that means? >> well, i think there is broad consensus that we've got to take action against this barbaric terrorist group known as isil.
and with the president suggests on the use of our air power has support. i think there's many of us who are very cautious as to giving an unlimited campaign as we saw what happened in iraq. and that military alone will not end isis. what we need to do is use the -- cutting off their financial support, political support, working with the modern arab states nap is extremely important. we need the international resolve. so i think the president set the right parameters for our engagement. but i think there's a lot of us in congress who are going to be concerned about open ended commitments. >> senator cardin, is this a real war or an optics war for a country that's upset but not upset enough to go all the way? >> well, we can get into the semantics as to whether it's a war or not. there's a specific law on the books known as the war powers act that congress passed with certain constitutional
responsibilities of the congress. and if the president has engagement over a period of time he should get the authorization of congress. >> senator johnson, do you think that there is the political will in this country to put ground troops on mass and get them involved? >> the only way you're going to get that political will is if the president leads. if the president shows exactly why isis represents a threat to america, and if the president just goes on tv one time and quite honestly contradicts his own goals statement there in terms of are we really going to destroy isis or contain them? you're not going to have the american support. i think it's a real danger. guys, you have to understand the reality of the situation. we had more than 130,000 troops. we surged more than 160,000 troops to defeat 6,000 to 8,000 al qaeda in iraq. okay? now we've got probably at least 15,000, that number will probably grow because they're being very effective recruiting
isis. they're better resourced, better equipped, better trained. they're a far more effective military force and we're going to supposedly destroy this isis force with 1500 american military personnel? i just don't think that's being honest with the american public that the goal is that. >> senator johnson, you know, if you call someone a reluctant war president, that's not a bad thing, i don't think obviously. and it's not a pejorative to say that. >> precisely. >> my question is, the president has been aggressive with drones. i mean, you cannot fault his -- what he's done with al qaeda, osama bin laden. i'm just wondering whether this guy, president obama, could surprise people like you in this context?
and if it did -- in your view, if it came down to where it was a clear and present danger to the united states and would require ground troops, do you think the president could maic that decision at the right time? i've given up on the private sector. he's never going to be what i want him to be on the private sector. but i think it's possible that he could do it in this case. no? >> listen. i think every american wants a president to be appropriately cautious. but if you're going to do that, you have to be committed to victory. >> do you think that he could do that -- in this case it's clear what's best for the united states. if it became clear that that would be necessary to protect the united states. >> i certainly hope this president has it in him to do that. he says he does. and he certainly demonstrated the drone strikes. but the anl yes i'm using is if you have a hornet's nest in your
back yard. there's a danger to your kids. are you going to go out there and destroy it or are you going to poke wit a stick for three years? i don't think you want to poke this hornet's nest with a stick for three years because it does represent a real threat to america. they've made their intentions very clear. established an islamist state. i think they need to be destroyed. >> senator cardin, is there any time you would use ground troops? under what circumstance? >> let's remember this is the 13th anniversary of the attack on our country. let us remember that in 2002 and '03 we were going to go into iraq and do it and get it done using the force of american ground troops and it would be a very short campaign. it didn't work that way. so let's be very cautious. >> is that a no? under no circumstance? >> if we have a legitimate risk
we need to use our military, i'll support that. i'm not going to support an open ended use of american force as we did in iraq. i opposed iraq. i think i was right to oppose us going into iraq. there was no real al qaeda force there before we got there and there's still a problem today. >> you know, if you got a land the size of maryland and an infrastructure and well funded, i mean, this is the enemy maybe we were looking for that you didn't think was there last time. there they are. they're right there. maybe you were right to oppose the iraq war. maybe this is the -- you know, that was a bad experience. it is not allowing you to do what's right in this case. >> no question about the fact that isis, isil is a barbaric terrorist organization and it requires international response and u.s. leadership. and i support that. what i suggest though is be cautious on what you believe you
can do by the use of ground forces. >> quick, our defenses are better than they were in 2011 but the threat is greater. we are not safe here. i do not agree with the president when he says we are safe. we are not. >> we're going to leave the conversation there. senators johnson and cardin, we appreciate your time this morning. >> thank you. >> have a great day. when we come back this morning, forget the denim. the yoga pants craze giving one stock a big boost. plus breaking economic news on the state of the nation's labor market. weekly jobless claims will be out. check out the futures. the dow futures down by 36 points below fair value. s&p down by 7.5. the picture has weakened through the morning. "squawk box" will be right back. . an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo...
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welcome back to "squawk box" this morning. shares of lululemon getting a big boost this morning. higher online sales helped drive a better than expected quarterly profit. also tell you about emc because it's thinking of selling its virtualization software. the new york post reporting hp could be on that. and shares of jds, they are soaring. the network gear maker announced it would split into two
entities. the company has been under pressure from sandel asset management. up next, jobless claim data. the numbers, they are coming soon. and the market reaction just ahead. plus remembering those lost this day. it's been 13 years, which is the -- that's a staggering number in and of itself. but it still is fresh in everyone's mind that was there on that day. the chairman and ceo of cantor fitzgerald lost 70% of their employees that day. he's going to discuss the firm's charity day. "squawk box" will be right back. while every business is unique,
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welcome back to "squawk box." in corporate news this morning, twitter plans to raise $1.3 billion through debt offerings. this will be the first such sale since the company's ipo last november. and i suggest that they do this quickly. shares are falling. wouldn't you? some day. >> cheap debt. they're going to use it today. the question is what are they going to buy with it. $1.3 billion is a lot of money. >> they're going to buy something?
>> they may. >> remember when ford did it just because they could? >> then they had the balance sheet. >> had a problem. when you get it at zero, you can go 50 years at zero or something. not quite, but it is a time -- >> a lot of companies have done that. johnson & johnson. also we should tell you about oil demand. its growth slipping to a two and a half year low. the agency is calling for the pace of the slowdown. they're saying the slowdown is remarkable. the iea points to softening europe and chinese economies. brent crude oil prices falling below a hundred dollars a barrel this month for the first time in more than a year. a stock to watch today. >> orexigen. >> i'm looking at him. not at you. >> thank you, becky. >> well, they have a new diet pill getting fda approval to be
sold in the united states. it's only the third obesity treatment in american a decade to get a regulatory okay. and you've got to be careful with the history -- >> of diet pills. >> they have weird -- >> what was the fen-phen? >> speeds up your heart. heart valves. i don't remember. >> i'm trying to remember myself. >> it would be nice to lose weight, but -- >> sometimes the best way to do it is just through moderation and exercise. >> and exercise. and, you know, use our elbows to push yourself. it's an elbow move. like this. push yourself back. you don't need to. >> thank you. >> order a salad. >> we are just a few seconds away from jobless claims data. this is something we've been waiting for. ahead of that we've also been watching the dow futures. you can see that after gains the markets posted yesterday where they closed near their highs,
they are giving back some today. dow futures below 45 points. and the nasdaq down to 13 points below fair value. right now let's get to the number we've all been waiting for. jim is standing by. he brings us those numbers now. >> it's not just any data. it's the lay bar market data. the numbers are worse than expected. it was expected at 300. so that's not a good number. continuing claims came in at 24.87 which is a tiny bit better. stock market came in soft. it's only down 6 on the s&p right now. yields came in at 2.52. this is what we said is the last look at labor. this is kind of a big deal. if they're going to change the
expectations, they're going to pour over the labor data. a week ago we thought everything looks good except for the labor market. nothing really has changed that in this. >> okay, jim. stick around. for more on these numbers we're joined by steve leisman as well. steve, this is a little surprising because we thought maybe those august jobs numbers would get knocked down by this. >> something worth watching, the claims numbers. but really they seem to be reported in a range, becky. and that range right now is 300 or even a 290 on the bottom of this to like a 320. and i wouldn't think anything that would be in that range is too much of a concern. claims are one of the things that are kind of back to normal. you heard jim talk about the continuing claims decline. there's another indicator we're following which is kind of the mother of all indicators. the kansas city fed has taken 24 labor market indicators out there. and this comes after janet yellen talked about the need to look at wide range of slack in the economy. and what this shows, by the way,
is the blue line is the activity indicator. that's on the way up, but notice it's still below where it was after the '01 recession. and the momentum is as strong as it's ever been. insurance claims are in here. the jolt survey is in here. all the stuff. it's all in one pot. now, one thing that nobody's done, i think i'm the first guy to do this, is to put that up against the fed funds target. what you see here is pretty interesting. so watch how it followed it very nicely '92 to 2000. then a big break -- >> this is where the drop goes. >> in 2001. and if the labor market is so back to normal, how can the funds rate -- what you're looking at there, just so you know i can make this say what i want it to say. you have to be careful with it because you can adjust the axis relative to each other. i didn't do it myself. i let the computer do it automatically.
>> what this is telling us is the fed could be behind the curve. >> but note if you go back to '92, the blue line where we are right now, we're not back to the bottom of the '92 or '01 recession. so there's a case for wide open policy. how wide open becomes the question. anywhere from if 1% to 3% behind the curve is what that indicates. >> there are some other ones that are back to much higher levels than they were. >> about kansas city is this is about everything. >> that's why you call it -- peek aren't using it as the mother of all indicators. >> it's new. >> from kansas city. >> fantastic city. >> all right. >> steve -- >> go ahead, jim. >> to put a fine point on it then, are we saying here that next week they really are going to back off on the language and
was that article that was released about the san francisco fed a couple days ago, is that a plan to get to market used to that idea? i do believe that's the case. you do, too, as well, right? >> i read a piece the fed may consider dropping that language considerable time. and the odds are rising that that's going to happen. because they can't -- >> if they're going to do it at this meeting, no doubt about it. >> so they drop that language. that language has to go with flexibility. could happen september, could happen october. the odds are higher there's more meaningful change next week. >> what's important i think is after the october meeting there's not the same sort of statement thing that there is in the september meeting. if they want to explain it, they might have to do it now so they feel like they're backed in a corner. so we'll see. >> now if i used the mars thing where if someone came from mars and looked at fed funds i say and kansas city -- but we can use that? because you can say the people from mars said look at --
>> that's a good air chart. that's a good air chart. >> look at that. here's fed funds. and here's -- >> here's the kansas city fed thing. absolutely. >> thank you. still to come, cantor fitzgerald remembering those lost on nevada by raising money for charities around the world. ceo mr. lutnick will join us next. we're back in a moment.
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it's been 13 years since the terrorist attacks of september 11th. and cantor fitzgerald remembers the tragedy and honors the victims by raising money for hundreds of charities around the world. joins us now is howard lutnick, ceo. howard, thank you for joining us this morning. >> thanks for having me. >> help us with this. i think 13 years later i wonder about people remembering. specifically actually about your firm. because you've had so many new people join the firm over the years. and the culture of the firm around this day. does it still resonate especially with the newer generation? >> well, you know, what was special about the company then and is special now is we like to hire people we like. we hire people with enthusiasm and passion. and so we hire friends, we hire family. we've got 41 children of guys who got killed 13 years ago.
imagine their kids working at cantor fitzgerald. that's extraordinary. and today is really the best day to build that culture. all of our employees we ask them will you waive your day's pay? all waive their day's pay. all of these employees behind me have waived their pay. we donate every penny, not our profits, every single penny of revenue we donate to charities around the world. last year we raised $12 million. i hope we do a little better this year. >> tell us about where all of that money goes. i know the cantor fitzgerald relief fund was originally set up to provide assistance to the family who is lost loved ones at the firm. but it's much more widespread than that now. >> right. in the beginning, our calling card we were going to give 25% of everything we made for the first five years. we would take care of the families we lost. i lost my brother gary, he was 36. my best friend doug who was 39. that 25% ended up being $180
million. but that was the first five years. then we started expanding it and giving money to others. for example, after hurricane sandy came through, we gave $10 million, a thousand per card to 10,000 families that had elementary school children in hard-hit areas. you know, areas that don't have a lot of money in there. we went out to moore, oklahoma, and gave those families $2 million. on labor day this year, my family and i went to bethesda naval hospital and take care of the families of guy who is get hurt. the guys who lose a couple of lims. who do you think is setting next to him? his mom and dad. do these people have the kind of jobs that pay them when they're sitting next to their son? so we take care of the mortgages and families for the next six months. that's the example of the kind of money that we use on a day like today. and it helps us turn the toughest day into something that's really beautiful. >> so tell us what will happen on this day? i know you have a number of celebrities who will join you in
the charity effort. >> we do. so, you know, the greatest people from new york, all the great celebrities, they come. so we have carmelo anthony coming. ben stiller's coming. edie falco's coming. the duchess of york is coming. you name it. it's across the board. all the sports stars, movie stars, america's top models, supermodels coming. always popular with the guys. basically everybody who's in new york comes and helps us. and then we help their charities out. and so that's sort of the give and take. all of our employees are waiving their day's pay. i want to make it fun and exciting for them and make it fun for their clients. we had lady gaga come and she was singing "poker face" into the phone for guys doing trades. >> howard, thank you so much for what you've been doing all these years. but i also wanted to point out there's a story, your sister edie who runs the fund. there's a story about her in
"the wall street journal" today. she was a labor lawyer who gave up her job to run the fund. it's pretty phenomenal what you and your sister have both done. i want to point that out to people too. >> i mean, look. my sister -- our saying between us is to talk to these families, they all have broken hearts. they have broken hearts. the best way to talk to someone with a broken heart is by someone with a broken heart. we lost my parents when i was young, my mom when i was 16, my dad when i was 18. so me, my brother, my sister were as tight as could be. and the loss of my brother when he was 36 just broke us terribly. and my sister turned that around to take all that pain and turn that into helping the families. and she's really been the extraordinary thing. my job is to help raise the money, take care of these families. hers is to touch them and be the human being. and it's really been amazing. >> howard, we want to thank you this morning. both for being on with us, of course, but for what you've done for the firm, the city, and the country. we appreciate it. >> thanks. i appreciate being here. when we return, the nation
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welcome back to "squawk box." we did get weekly jobless claims rising to a seasonably adjusted 315,000. >> in equity futures has been in the red all morning long and have gotten a little bit worse. they don't know what to attribute any of this to. for those on the radio, the s&p opened down 8.50, dow implied to open down 80 points and the nasdaq 17.50. the ten-year note, we have it dropping a little bit. 2.513% at this point. the euro continues to trade below $1.30. it's $1.29. >> president obama outlining his
plan for defeating isis last night. >> this counterterrorism campaign will be waged through a steady, relentless effort to take out isil with air power and support our partners with forces on the ground. this strategy taking out terrorists who threaten us while supporting partners on the front line we successfully pursued in yemen and somali for years. joining us is a former state department undersecretary for economic growth, energy and the environment. bob, tell us what you liked about what you heard and maybe what concerns you a little. >> i like the bolder approach. i like the fact we are trying to put together a coalition. i like the fact that he wants to go after isis relentlessly. these are all very positive things. the fact that he wants to make this a persistent effort is important because this is not something that is going to go away overnight. what is difficult about this is
the following. first of all, he used the analogy of yemen and somalia. they are very different situations. in yemen there is a government, not a great government, but there is a government. we give them information. we go after pockets of resistance. somalia, very weak government, but its pockets of resistance, some very large. isis is much bigger. that's one problem. second, who are the allies on the ground? if we do bomb in syria, and i support that, we have to figure out how we bomb and who we bomb and get good intelligence. the free syrian army, which used to be our ally is much weaker. where do we get the intelligence, particularly because isis will congregate in civilian areas. pinpointing the targeting is going to be very important. in iraq, the problem is that the army is considered by many sunnis to be opposed to them. it's seen to be pro-shiite.
you not only have to change the army and make it more effective, you have to convince the average sunni that it's credible and not an extension of the shiite government. they move toward isis in part because they resist and resent the army. you have to make major changes in the army to have effective players on the ground. >> obviously, there's already second guessing about why we waited so long. there is an analysis on the front of the "wall street journal" today wondering if we should have gone after isis back in june when this first happened, when they took mosul. the argument you just made may be a reason why we shouldn't have gone in sooner. the idea we needed to get some change in the iraqi government first. would you agree with that? >> i would have liked to have gone in earlier. i can see the argument. you cannot have an iraqi government that is seen by most sunnis as being counter to their interests trying to mobilize
sunnis to support the effort against isis. isis is not a group that they support because they agree with its primitive ways, its medieval conduct, its brutality. the new prime minister is going to have to figure out how to move this thing in a much more effective way, and be inclusive and bring the sunnis in. that's no easy task because they've been alienated so long. that's going to be a major problem. if he can't do that, we can bomb isis all we want, and we should bomb them, but you won't be able to get a new power structure, which includes the sunnis. the other problem is if you don't bring the sunnis in, and you just kill all the isis people, it strengthens the shiites and the iranians who are going to be in a stronger position because the sunnis will
be alienated and they won't have any degree of influence. >> bob, was there a time, and this is where the president used the j.b. term which has come back to haunt him. isn't there a time where a year and a half ago the rebel groups were fragmented and maybe the biggest one was the free syrian army? we know that the vacuum attracted all these elements, the more jihadist elements that came in. was there an isis 1 1/2 years ago or did it just spring up because of the vacuum that was there? maybe we could have armed the good guys or helped the good guys back then. or is that a fantasy? >> it's not a fantasy. we could have done a lot more to support the syrian army earlier. >> i forgot, you are a hillary guy. >> hillary was right supporting the point she was making.
there was not -- free syrian army was not a perfect entity, let's face it, but it was an entity and it was stronger then than it is now. they were hoping we would support them in their effort to deal with assad. that was the target at that point. the fact is, we didn't support them. assad is somewhat stronger, but then there was a vacuum in the sunni area which isis has filled. we lost doubly. it raised a very interesting point. at the current moment, do we go after assad and isis at the same time or do we put aside for the moment, go after isis, strengthen the free syrian army to deal with isis, then as a follow-up with a stronger free syrian army, assuming it is successful against isis, then support against assad. there are carefully calculated judgments that have to be made.
>> are you arguing that's the way to do it, bob? >> first of all, it's going to take a while to strengthen them. the saudis may help to do that. they are going to train some of them, evidently. i don't think you can find a two-front war. they are not even strong enough to deal with isis at this point. they need a lot of training, but to do both at the same time is going to be difficult. i would like to get rid of assad and isis. theoretically -- >> pick your poison. >> realistically, those boots on the ground probably aren't strong enough to do both. >> bob, quickly, ten-second answer on this. the american public stands behind the president right now. how tough is that resolve and how long-lasting is it? >> that is a critical point. our allies in the region are going to want to see a sustained american effort. if they are going to give support to the united states, jordanian, syrians and others, they want to be sure the united states is not just going to do this temporarily then pull back
leaving them exposed. >> okay. bob, thank you for joining us this morning. >> good to be with you again. >> appreciate it very much on this anniversary date 13 years later after 9/11. join us tomorrow. "squawk on the street" begins right now. good thursday morning. welcome to "squawk on the street." on this 13th anniversary of the 9/11 attacks, it is a morning of remembrance. we will see a moment of silence at the exchange in a few minutes. it is a busy news day. david will have an interview with sprint's ceo. >> the dow failed to put two winning days together since august 22nd. the president laying out his